What You Need to Know
1. Notifications
Notification of your intention to cease practice should be sent to:
Law Society
Registrar, Supreme Court
Clients
Notification to the Law Society
Written notification to the Law Society using the Cessation of Practice Form LF4 to inform of your intention to cease legal practice is recommended to be received by the Law Society at least four (4) weeks prior to cessation of your legal practice.
Please submit a copy of the duly completed Cessation of Practice Form to Lockton Companies (Singapore) Pte Ltd (the Law Society’s professional indemnity broker) simultaneously when you notify the Law Society of your intention to cease legal practice.
Notification to the Registrar, Supreme Court
Pursuant to section 27 (3) Legal Profession Act, every lawyer shall notify the Registrar, Supreme Court and Council of the Law Society within 1 week of any change of particulars referred to in section 27(1) or with respect to the status of his practising certificate, including cessation of practice.
Please note that notification to the Registrar, Supreme Court and the Council (previously by way of faxing the completed hard copy form to the relevant parties) is now to be made online.
The online Notice of Change of Particulars form is found on the Supreme Court's website. To locate the form:
Please note that upon filing the Notice of Change of Particulars, you are required to fax a copy of the same to Lockton Companies (Singapore) Pte Ltd. at 6225 0682 (Attn: Wendy Wee).
Notification to Clients
Please refer to Rule 44 of the Legal Profession (Professional Conduct) Rules which states that when a firm is dissolved, the solicitor and client relationship shall terminate and the final decision of which advocate and solicitor shall be appointed to take over the conduct to the client’s matter shall rest with the client.
Clients must be notified in writing, whether or not there is a successor law practice, of the following:
The cessation of legal practice;
The amount of moneys held in the law practice’s client’s account belonging to him; and
The types of documents and/or property held by the law practice belonging to him.
If there is a successor law practice which will take over the conduct of the client’s matter, then clients must additionally be informed of the following in writing:
Provided always that the client must first consent:
To the transfer of the matter (including any property of the client) to the successor law practice; and
To the transfer of his client’s money held by the ceasing law practice to the successor law practice.
Where no successor law practice will take over conduct of the client’s matter, the client’s file, property and moneys must be returned to the client.
If moneys are to be utilized for payment of any outstanding costs under a delivered bill of costs, you must comply with the Practice Direction of Council requiring you to write to your client informing of the transfer of the amount in payment of a bill and that he has 2 days from receipt of your letter to object, failing which the money will be transferred from the client account to the office account.
For your ease of reference, the Law Society’s specimen Letter of Notification to Clients on dissolution of a law practice is available for your adaptation.
Please refer to Rule 42(2) of the Legal Profession (Professional Conduct) Rules which provides that if a solicitor withdraws from representing a client, he shall take reasonable care to avoid foreseeable harm to the client, including giving due notice to the client, allowing reasonable time for substitution of a new solicitor, co-operating with the new solicitor, and subject to the satisfaction of any lien the solicitor may have, promptly paying to the client any moneys and handing over all papers and property to which the client is entitled.
2. Accountant’s Report
Pursuant to the Legal Profession (Accountant’s Report) Rules (‘Accountant’s Report Rules’), you are obliged to deliver your final accountant’s report.
Please refer to the Schedule of the Accountant’s Report Rules for a format of the requisite report.
The accounting period ends on the date you cease to hold or to receive any client’s money.
3. Preservation of Books of Accounts
Pursuant to Rule 11 (6) of the Legal Profession (Solicitors’ Accounts) Rules, you are required to preserve your books of accounts, ledgers, records and bank statements in respect of client accounts for at least six (6) years from the date of cessation of your former legal practice.
4. Preservation of Files
The Council of the Law Society’s Practice Direction on the preservation of files are appended below:
|
Matter |
No. of Years After Completion of Matter before File may be Destroyed |
|
Conveyancing (acting for purchaser) |
12 |
Conveyancing (acting for vendor on sale of
the whole title) |
12 |
Conveyancing (acting for vendor who retains
part of the title) |
12 |
|
Common law matters |
6 |
Probate & Administrations where whole estate
is wound up and distributed |
3 |
Matrimonial matters where no continuing
obligations exist or from determination of
such obligations |
6 |
|
Company formations or similar matters |
6 |
|
Other matters |
1 |
5. Outstanding Professional Fees and Undertakings
Notwithstanding cessation of your legal practice, your liability (including those of your co-partners’ or former partners’) for outstanding professional fees and for professional undertakings continue.
6. Refund of Professional Indemnity Insurance Premium Paid
Only members who have ceased legal practice may apply to request for refund of Professional Indemnity Insurance premium (‘premium’) already paid.
Members who have ceased practice and who wish to apply for a refund of the premium paid for the Professional Indemnity insurance will have to comply with the following requirements with effect from 1 May 2008:
Confirm in writing, by letter addressed to Lockton Companies (Singapore) Pte Ltd that:
you have duly notified the Registrar, Supreme Court and The Law Society of your cessation from practice; and
that you are therefore requesting a refund of the premium paid for your Professional Indemnity insurance.
This letter must be copied to The Law Society.
All written requests for refunds of premium must be made to Lockton Companies (Singapore) Pte Ltd not later than six (6) months from the expiry of the Law Society’s Professional Indemnity Insurance Policy. The Professional Indemnity Scheme Insurers will not accept requests for refunds made after the six (6) month period.
7. JOIN US!
Notwithstanding that you have decided to cease legal practice, you may still continue to enjoy the benefits of membership and participate in the activities of the Law Society. All you need to do is join us as a non-practitioner member of the Law Society.
As member of the Law Society, you will continue to receive our weekly and monthly publications featuring the latest practice information and legal developments, and have access to members-only sections on our website and participate as member of any of our committees, and enjoy special members’ rates at any of our continuing professional development programmes. Click here to join as non-practitioner member.
For further queries, call us at 6538 2500 or e-mail
communications@lawsoc.org.sg
